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TMI Blog2024 (7) TMI 1260X X X X Extracts X X X X X X X X Extracts X X X X ..... Debtor - directing the liquidator to put on hold the liquidation proceedings was rejected - HELD THAT:- Looking at the concept of the doctrine of necessity , which has to be read in accordance with the provisions contained under section 60(5) of I B Code, 2016, it provides for meeting out such inevitable circumstances in form of the powers vested with the Tribunals and particularly the NCLT as referred to in sub-section (5) of section 60 of I B Code, 2016, to pass any appropriate order for fruitfully disposing of any application or proceedings in order to meet the purpose of CIRP, as against the Corporate Debtor. In the instant case owing to the Resolution Plan which was submitted by the Appellant and approved by NCLT, the Corporate Debtor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Mr. Sankar Varadharajan, Advocate For the Respondent No.1 : Mr. Sathiyanarayanan, Advocate For Respondent No.2 : Mr. Dhruva, Advocate, For R2 JUDGMENT ( Hybrid Mode ) [ Per : Sharad Kumar Sharma , Member ( Judicial ) ] The Appellant in this Company Appeal is the Successful Resolution Applicant / Promoter of M/s. Topknit Processing Mills Pvt. Ltd., the Corporate Debtor. He raises his grievances as against the Impugned Order of 10.05.2024, as it has been passed by the Learned Adjudicating Authority of Chennai Bench in IA/IBC/1748/2023, as rendered in IBA/902/2019. By virtue of the Impugned Order under challenge, the relief which was sought by the Appellant in form of (i) Staying the operation of its order dated 26.07.2023 directing liquida ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is kept in the escrow account, as it was then directed by the Learned Adjudicating Authority. However, he could not deposit the balance amount which was due to be paid under the approved Resolution Plan of 20.06.2022, within the stipulated time period and since the condition of the Resolution Plan was not complied with, the Respondent filed an application IA No. 429/2023 praying for that owing to non-compliance of the order of 21.06.2022, the order under section 33(3) of I B Code be passed to liquidate the Corporate Debtor and the liquidator may be appointed for administrating the liquidation process of the Corporate Debtor. The Appellant contended that he had pleaded that there were certain unavoidable circumstances because of which he c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the funds and thus he filed IA No.1748/2023 praying for depositing the balance amount of Rs.9,37,500/- as per the approved Resolution Plan dated 20.06.2022 and for staying liquidation proceedings and for withdrawal of personal insolvency application by 2nd Respondent / SIDBI so that he will be able to deposit the balance amount. However, the said IA came up for consideration before the Learned Adjudicating Authority on 15.12.2023, the Judgment was reserved on it, and later on the same was rejected by the Impugned Order of 10.05.2024. Hence, he has filed the instant Appeal. When the Appeal was taken up at the admission stage, the parties to the Appeal were represented by their respective counsels and in fact the liquidator / Respondent No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be read in accordance with the provisions contained under section 60(5) of I B Code, 2016, it provides for meeting out such inevitable circumstances in form of the powers vested with the Tribunals and particularly the NCLT as referred to in sub-section (5) of section 60 of I B Code, 2016, to pass any appropriate order for fruitfully disposing of any application or proceedings in order to meet the purpose of CIRP, as against the Corporate Debtor. In the instant case owing to the Resolution Plan which was submitted by the Appellant and approved by NCLT, the Corporate Debtor was expected to revive back in and to reach the status of being a going concern. Though hesitatingly and particularly considering the stand taken by the Respondent / Liq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... corporate debtor or corporate person under this Code . Though sub-section (5) of section 60 as extracted above, refers to NCLT only, the said reference of NCLT has to be given its logical interpretation for the reason being that the NCLT as referred under sub-section (5) of section 60 of I B Code, 2016, has had to be extended to cover the NCLAT as well because the proceeding before NCLAT in exercising of its Appellate powers under section 61 of I B Code, 2016, happens to be a proceeding in continuance to the proceedings before the NCLT. Accordingly, it would follow that the NCLAT too can extend its powers under section 60(5) to meet out the ends of Justice in order to avoid liquidation of the Corporate Debtor. Thus, owing to the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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